Rating agency Fitch has affirmed Emirates Development Bank’s (EDB) Long-term Issuer Rating (IDR) as ‘AA-’ with Stable Outlook. The bank, a key financial enabler of the UAE’s economic diversification and industrial transformation agenda, has also been assigned an ‘aa-’ Government Support Rating (GSR).
“The AA- rating is a reflection of EDB’s strong performance over the last 12 months, under a new strategic direction that has transformed it into a key enabler of the UAE’s industrial transformation and economic diversification,” Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, Chairman of EDB, said. “The rating demonstrates clear confidence in the bank’s leadership and operational excellence, as well as in the continued strength of the UAE economy.”
” Thanks to the steadfast support of EDB’s board, our committed stakeholders and our loyal customers, our model has proven its resilience and agility,” Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said. “The AA- rating affirmation, reflects EDB’s capital base strength and forecasted growth in its lending operations.”
In its report, the IDRs are equalized with the UAE sovereign rating and reflect an extremely high probability of support from UAE authorities, if needed.
The EDB has contributed AED1.91 billion to the UAE’s GDP growth following the launch of its new strategic vision. This has been achieved through indirect and direct financing to SMEs and large corporates sponsoring industrial projects across five priority sectors.